AC 302 Chapter 20 Question 7

AC 302 Chapter 20 Question 7
Name					Date			
Instructor					Course			
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield								
Primer on Using Excel in Accounting by Rex A Schildhouse								
								
E20-7 (Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2012.								
	Projected benefit obligation, 1/1/12 (before amendment)					$560,000 		
	Plan assets, 1/1/12					546,200 		
	Pension liability					13,800 		
	"On January 1, 2012, Rydell Corp., through plan amendment,
grants prior service benefits having a present value of"					120,000 		
								
	Settlement rate					9%		
	Service cost					58,000 		
	Contributions (funding)					65,000 		
	Actual (expected) return on plan assets					52,280 		
	Benefits paid to retirees					40,000 		
	Prior service cost amortization for 2012					17,000 		
								
Instructions:								
For 2012, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.								
								
								
RYDELL CORP.								
Pension Worksheet—2012								
			General Journal Entries				Memo Record	
Items			"Annual
Pension
Expense"	Cash	OCI - Prior Service Cost	"Pension
Asset/
Liability"	"Projected
Benefit
Obligation"	"Plan
Assets"
Balance, January 1, 2011						Formula	Formula	Formula
(a) Prior service cost					Formula		Formula	
New balance, January 1, 2012							Formula	Formula
(b) Service cost			Formula				Formula	
(c) Interest cost			Formula				Formula	
(d) Actual return			Formula					Formula
(e) Amortization of PSC			Formula		Formula			
(f) Contributions				Formula				Formula
(g) Benefits							Formula	Formula
Journal entry, December 31			Formula	Formula	Formula	Formula		
Accumulated OCI, December 31, 2011					Amount			
Balance, December 31, 2012					Formula	Formula	Formula	Formula